What are my tenants rights if I want to sell my property?

It’s important to acknowledge your tenants’ rights when selling

You and your tenants will have signed a rental agreement before they moved in, and this will give them certain rights and responsibilities. It’s important that you acknowledge and respect these legally binding terms of the tenancy agreement before trying to sell your investment property.

Because you are the owner of the house or flat that the tenants are living in, you have the right to put it on the market whenever you want. However, the existing tenants’ rights can create some potential hurdles that might complicate how quickly and easily you can sell your home.

The very first step you should take when you know you want to sell is to inform your existing tenants. Most rental agreements have a provision that says how much notice landlords must give tenants that the property is being sold and the agreement is coming to an end. This is typically 60 days but it can be more or less time depending on the terms of the agreement.

One outcome might be that you are planning on selling the home to a new landlord who will simply give the existing tenants a new agreement or take over your agreement. But it can be difficult to find such buyers, as such sales have a very limited market.

Steps you can take to make the process of selling your tenanted home easier

Hopefully, you have a good relationship with your tenants and they will understand that you want to sell, and that you will grant them the full notice period before they have to move.

You could offer to let your tenants stay until you find a buyer, because their rent payments will give you some monthly guaranteed extra cash while the home is on the market. Because the property market can be unpredictable, your home could be up for sale for a long time. Take a look at property websites like Rightmove for recent news about house and flat sales in your area, as well as to get a general idea of sale prices.

Keeping your tenants happy during a sale is important because you might be holding viewings where buyers come to see the place. Happy tenants are likely to keep the place in great condition, whereas problem tenants might deliberately make the house look messy and unattractive to buyers as retaliation for your decision to try selling.

Just as you have the right to give your tenants notice to move out, they also have the right to stay for the duration of that notice period. If you already get on well with your tenants – and they do not have any major issues with prospective buyers coming for viewings – you should acknowledge and grant their right to stay in the home until the notice period expires.

In the event you do have a problem tenant who refuses to leave, you can start the process for serving them a Section 21 notice to vacate the premises. But if they still won’t leave you might be stuck with having to launch a legal fight to get them evicted before you can sell.